The Scherzer Corporation produces and markets two types of laptops: Model 4 seamer and Model slider. The following data was gathered on activities during the third quarter:

Corporate fixed expenses are common in nature, and thus will not be eliminated or reduced by eliminations of models, however, it was determined that the internal accountant allocated based on ratio of traceable fixed production costs in his work up.

	Model 4 seamer	Model slider
Sales in units	5,000	2,500
Sales price per unit	$ 100	$ 200
Variable production costs per unit	$ 20	$ 40
Traceable fixed production costs	$ 200,000	$ 300,000
Variable selling expenses per unit	$ 10	$12
Traceable fixed selling expenses	$ 10,000	$ 20,000
Allocated portion corporate fixed expenses	$ 100,000	$ 150,000

Required: Prepare a segmented income statement in good form for last quarter. The statement should provide sufficient detail to allow the company to evaluate the performance of the manager of each product line.

Should either of these models be eliminated? why or why not?

What is slider break- even in sales?

What is 4 seamer break-even in sales?